Dodd-Frank rollback raises the asset threshold for systemic financial institutions from $50 billion to $250 billion.

Peter Prince

2018-05-21 07:39:00 Mon ET

Dodd-Frank rollback raises the asset threshold for systemically important financial institutions (SIFIs) from $50 billion to $250 billion. This legislative change exempts some banks from annual stress tests and living wills that the Obama administration designed as a safety valve to prevent another major financial calamity. As a result, this structural regime switch will provide smaller financial institutions with primary relief from the strict rules and regulations that apply to most Wall Street banks.

President Trump affirms his clear intention to sign this bill into law. The Dodd-Frank rollback tends to benefit non-systemic financial institutions, community banks, and other small lenders. However, Congress expresses the consensus view that most banks should be subject to substantially higher core equity capital requirements to safeguard against extreme losses in rare times of financial stress.

As financial intermediary capital covaries with both aggregate credit supply and household debt fluctuations, these ebbs and flows cause real business cycles and financial market fluctuations. Sticky prices and interest rates can persist over the interim period, and transitional dynamism manifests in real macro movements such as real GDP expansion, employment, capital investment, industrial production, and bank balance sheet expansion.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Federal Reserve's QE exit strategy makes sense ahead of Fed Chair Janet Yellen's stepdown in 2018.

Chanel Holden

2017-03-27 06:33:00 Monday ET

Federal Reserve's QE exit strategy makes sense ahead of Fed Chair Janet Yellen's stepdown in 2018.

Goldman Sachs chief economist Jan Hatzius says the Federal Reserve's QE exit strategy makes sense ahead of Fed Chair Janet Yellen's stepdown in 2018

+See More

Blue-ocean strategists shift focus from current competitors to alternative non-customers with new market space.

Apple Boston

2020-05-21 11:30:00 Thursday ET

Blue-ocean strategists shift focus from current competitors to alternative non-customers with new market space.

Most blue-ocean strategists shift fundamental focus from current competitors to alternative non-customers with new market space. W. Chan Kim and Renee Ma

+See More

U.S. government shuts down again because House Democrats refuse to spend $5 billion on the border wall.

Amy Hamilton

2019-01-19 12:38:00 Saturday ET

U.S. government shuts down again because House Democrats refuse to spend $5 billion on the border wall.

U.S. government shuts down again because House Democrats refuse to spend $5 billion on the border wall that would give President Trump great victory on his

+See More

Saudi Aramco unveils the financial secrets of the most profitable corporation in the world.

Jacob Miramar

2019-04-13 14:28:00 Saturday ET

Saudi Aramco unveils the financial secrets of the most profitable corporation in the world.

Saudi Aramco unveils the financial secrets of the most profitable corporation in the world. In its recent public bond issuance prospectus, Aramco offers the

+See More

Netflix suffers its first major loss of U.S. subscribers due to the recent price hikes.

Rose Prince

2019-08-14 10:31:00 Wednesday ET

Netflix suffers its first major loss of U.S. subscribers due to the recent price hikes.

Netflix suffers its first major loss of U.S. subscribers due to the recent price hikes. The company adds only 2.7 million new subscribers in 2019Q2 in stark

+See More

A small fraction of the population enjoys most capital and wealth creation.

Jacob Miramar

2017-03-15 08:46:00 Wednesday ET

A small fraction of the population enjoys most capital and wealth creation.

The heuristic rule of *accumulative advantage* suggests that a small fraction of the population enjoys a large proportion of both capital and wealth creatio

+See More